Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Croftsman Company recorded the following information for its main product $390 Selling price per unit Costs per unit (39,000 units produced and sold) Direct material

Croftsman Company recorded the following information for its main product $390 Selling price per unit Costs per unit (39,000 units produced and sold) Direct material Direct labour Variable overhead Fixed overhead Sales Commission 25 20 7.5% of sales Required: 1. Compute the contribution margin ratio and break-even sales Contribution margin ratio Breakeven sales 2. What is the margin of safety in dollars and units, and the degree of operating leverage? (Round "Degree of operating leverage" to 2 decimal places and the rest to the nearest whole number.) Dollars Units Margin of safety 2 What is the margin of safety in dollars and units, and the degree of operating leverage? (Round "Degree of operating leverage" to 2 decimal places and the rest to the nearest whole number.) al e " on Margin of safety Dollars Units Degree of operating leverage

Step by Step Solution

3.35 Rating (161 Votes )

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental accounting principle

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

21st edition

1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587

More Books

Students also viewed these Accounting questions

Question

Name the different levels of the hierarchy of needs. (p. 264)

Answered: 1 week ago

Question

7 8 8 . .

Answered: 1 week ago

Question

How much is 1/2 % of $10?

Answered: 1 week ago

Question

1301/2 % of $455 is what amount?

Answered: 1 week ago